The AIM-listed commercial flooring manufacturer achieved revenues of £109m in the period, down from £117.7m in the same period in 2011.

But pre-tax profits were up 2.2 per cent from £21.1m to a record £21.6m Radcliffe-based Halstead has increased its interim dividend by 10 per cent to a record 2.75p and has proposed a special dividend payment of 7p a share.

Projects undertaken during the period included the European Space Agency facility in French Guyana and the Plevin Library in Bulgaria.

Halstead blamed its lower revenues on the closure of its non-core Phoenix Distribution business, which sold motorcycle accessories, changes in exchange rates and a decline in overseas flooring revenues, particularly from Australia and the Middle East.

The company said it had kept tight control on its overheads, but warned of a slowdown ahead in the UK flooring market, which is forecast to contract by two per rent in 2003.

Chairman Geoffrey Halstead said: "Although we have reported record interim profits, it is clear certain areas have slowed.

"UK construction output is forecast to fall by over two per cent in 2013, following a nine per cent decline in 2012, with public sector work continuing to bear the brunt.

"Any recovery will be in 2014 at the earliest and against this backdrop the three per cent growth in our UK sales in the year to date, leading to record flooring sales in the UK, is a creditable achievement."

Chief Executive, Mr Mark Halstead, said: “Having, once again, achieved record profits and with a bulwark of a strong balance sheet it is pleasing to announce another special dividend.

“But it is clear market conditions are not easy, it has been difficult for many companies since the financial crisis of 2008 affected us all.

“We have since that time raised turnover by 54 per cent and profit by 193 per cent which is clearly testimony to our strength.”